BILL ANALYSIS

H.B. 2345

By: Dutton

Special Purpose Districts

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The Near Northside Management District in Harris County was recently created to promote and coordinate economic growth, promote creation and beautification of area green spaces, and promote and supplement public security within the boundaries of the district. Interested parties explain that expansion of the boundaries would facilitate coordination by the district with other entities in providing projects and services. H.B. 2345 seeks to expand the district's boundaries.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2345 amends Chapter 358, Acts of the 82nd Legislature, Regular Session, 2011, to change the south boundary of the Near Northside Management District.

H.B. 2345 amends the Special District Local Laws Code to exclude any overlapping territory from the territory of the district that was created first, regardless of whether the territory overlapped on June 17, 2011, if territory in the Near Northside Management District overlaps with the boundaries of another district created before June 17, 2011, that has the powers of a municipal management district. The bill establishes that the exclusion of territory does not diminish or impair the rights of the holders of any outstanding and unpaid bonds, warrants, or other district obligations. The bill requires the district that was created first to continue to impose fees, taxes, or assessments, if any, on the excluded territory at the same rate imposed on other territory in the district until the total amount of fees, taxes, or assessments collected from the excluded territory equals its pro rata share of the indebtedness of the district at the time the territory was excluded. The bill requires all fees, taxes, or assessments collected in the excluded territory by the district that was created first to be applied to the payment of the excluded territory's pro rata share of indebtedness. The bill authorizes the owner of all or part of the excluded territory at any time to pay in full the owner's share of the excluded territory's pro rata share of the indebtedness at the time the territory was excluded.

H.B. 2345, if the district that was created first does not have any outstanding and unpaid bonds, warrants, or other district obligations but imposes assessments under an assessment plan adopted before May 1, 2015, authorizes the district to continue to impose those assessments on the excluded territory at the same rate imposed on other territory in the district to satisfy the requirements of that assessment plan. The bill requires all assessments collected in the excluded territory by the district that was created first to be applied to satisfy the requirements of the assessment plan.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2015.